Skip to Content

Why interest rates are rising

July 13, 2018


The interest-rate hike announced by the Bank of Canada on July 11 is only the first in a series of increases expected by Scotiabank Economics over the next 18 months, says Chief Economist Jean-François Perrault.

The latest Global Outlook from Scotiabank Economics calls for another Canadian rate increase this year – and three more in 2019.

Watch the video for a discussion of why rising rates are seen as justified under current conditions, and how a turbocharged U.S. economy is also expected to drive up U.S. rates, with the fed funds target rate forecast to hit 3% by the end of 2019.

You can read the complete Global Outlook here.